FEATURES OF INNOVATION AND INVESTMENT ACTIVITY OF UKRAINIAN FARMS

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FEATURES OF INNOVATION AND INVESTMENT ACTIVITY OF UKRAINIAN FARMS

Journal Title: ЕКОНОМІЧНИЙ ДИСКУРС - Year 2018, Vol 1, Issue 1

Abstract

Introduction. The emergence and functioning of farms significantly affects the production of gross agricultural products and the creation of a market environment in Ukraine. However, their development is characterized by unevenness. So, the number of farms is more than 32 thousand units as of January 1, 2017, which is more than twice the 25 year old. At the same time, the largest number of this organizational and legal form of management acquired in 2002 and amounted to more than 43 thousand units. Such reduction is due to the extensive way of conducting their agricultural activities. Methods. The dialectic method of cognition and the systematic approach, methods of the abstract and logical method, the work of domestic and foreign scientists, as well as analytical materials on the development of farms are used in the course of the research. Results. The peculiarity of modern development of farms is not so much an increase in their number, but in size. Thus, in comparison with 2002, the area of agricultural land in their use increased by 157.2%, and compared with 1992 more than 5.6 times. However, such pace does not correspond to the rates of growth of gross output of this organizational and legal form of management. Compared with the figures for 2002, the volume of gross production by farms increased by only 36.0 pp. Many factors are affected by these results, the most important of which is the impossibility of accumulation of sufficient amount of financial resources, as the main source of financing for the implementation of innovation and investment plans of Ukrainian farms has been and remains its own sources. According to the calculations, the gross investment of farms in 2017 amounted to almost 9 billion UAH, which is only 2.1 thousand UAH / ha of agricultural land. At the same time, more than 97% of this volume of investments was managed by farmers through their own sources. In addition, the most farms lack a strategic vision of their economic activity, which only responds to current changes and does not allow to accumulate sufficient reserves in order to realize long-term plans. Therefore, managers of these farms need to plan scientifically-based approaches to the development and implementation of investment strategies. Discussion. The conducted researches allow to assert, that the further development of the farms is directly connected with diversification of sources and an increase in the amount of financing of innovative ideas. A long-term program to stimulate farm development should be developed and funded in full to this end, taking into account the five main priorities. In addition, it is necessary to provide organizational, advisory and financial support for the development of farms, at the expense of opportunities of local budgets and communities.

Authors and Affiliations

Maksym Kropyvko

Keywords

farms; innovation and investment activity; sources of financing; investments; material and technical support

EP ID EP532736
DOI -
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